Discuss about the Strategy Choice and Implementation Report of Coca-Cola Great Britain Company.
Background of Coca-Cola Company
Coca-cola Company is a public traded company that manufactures beverages. The company has its headquarters in Atlanta, Georgia in the United States of America. The company was founded in the year 1886. Currently, the company manufactures products for the world market. It has it presence in all world countries except Cuba and North Korea. The company is lead by Muhtar Kent who is the Chairman and CEO. James Quincy is the president and COO of the company (Coca-Cola Great Britain, 2009).
Coca Cola is a leading beverages manufacturer that has diversified over time to accommodate changes and development in the society. The Company famous brand is coca cola which is the oldest and led to the starting of the company. The company also produces other brands like Fanta, sprite, Limca, Minute Maid etc. The company has the strongest brand recognition in the world. It has 94% recognition from the world population on the red and white logo of coke brand. In this report, coca cola brand has been discussed to identify it strategy and evaluate implementation process to conclude and recommend on it appropriateness (Curtis, 2005).
The coca cola Great Britain has 18brands. These are contained in 82 different drinks that are sold to the British market. These drinks are Coca Cola, Diet Coke, Coca-Cola Life, Coke Zero, Sprite and Fanta. These products are packed in a variety of aluminum cans, plastic bottles and glasses. This subsidiary serves the United Kingdom and Western Europe market (Bromley and Meyer, 2015).
The company has a mission of refreshing the world, inspiring moments and create value that makes difference through its products and actions. The company envisions that it will be a great place of work, manufacture quality beverages that satisfy customers’ needs, nurture a good relationship with suppliers and customers, be a responsible to earth and support sustainability to people around it, maximizes shareholders returns and be effective in order to be a fast moving organization (Coca-colacompany.com., 2016).
Identification and evaluation of the chosen strategy
One brand Strategy
The company has continuously differentiated it products to serve specific niche in the market. From the one know product, the company differentiated the features to serve the changing needs of the society. This has led to the same product being sold under different brand names. For instance, due to changing society as a result of health disease caused by consumption of sugar, the company came up with a coke drink that was sugar free. The diversification of coke drink in Great Britain has taken four form; Diet Coke, Coca Cola Life and Coco Cola Zero Sugar. Despite these diversified brands of Coke, the original Coca-Cola Classic brand is still maintained. This strategy has enabled the company maintain its market share and increase return despite the changing society. Consumers who have become health conscious or are suffering obesity are served by the company in a differentiated brand that is manufactured in their specificity (Bromley and Meyer, 2015). This way, consumers will be able to make choice easier and simpler. This strategy will unite the entire coke brand
In the past, CCGB has been advertising these Coke brands separately. Each brand was being promoted separated with different tailored made promotional marketing messages and channeled differently. This activity of creating awareness for the differentiated brands in media and other promotional channels has proven to be expensive for the company. Following a research that has been made by the research and development department of the company showed that consumers did not understand the options available to them. It established that despite the company’s effort to make different promotional messages for different brands, consumers didn’t differentiate brands on accounts of specific needs. Therefore, it not economical to generally continue with different promotional messages for different brands instead concentrates on one brand promotion.
This led to formulation of the one brand strategy for the coke beverages in Great Britain. The company aims to use this one brand promotional message to promote all other differentiated brands. The strategy will market all the brands under one promotional message.
Suitability of the one brand strategy
The one brand strategy is as a result of lack of awareness from the intended consumers. The efforts of the company to offer tailored made promotional message for individual brand now narrowed to one brand. This strategy when implemented will have different implications to company and consumers. Though the new promotional strategy will capture the four brands, it will be general and not specific as tailored before. In order to evaluate the suitability of the strategy undertaken by CCGB, SWOT analysis, PESTLE analysis and Strategic goals have been discussed.
Strategic goals for one brand strategy
The strategic goal of one brand strategy id uniting the distinct brands so that they can benefit from superior and established brands. One brand approach strategy will unite the coke brands. The four distinct brands will be promoted under one Coca Cola name in the market. It is aimed that the low or no sugar brands will gain popularity by closer association with classic. Therefore, the company will be able to increase its sales for no or little sugar brands in Great Britain. This will be enable the company to reach it long term goal of 50% sales to be from lower or no sugar by 2020 (Coca-colacompany.com., 2016).
In order to reach the strategic goal, the company is to make the following changes:
All packaging will highlight important information of all distinct br5ands
The Coke advert will showcase all the brands
The Coke TV promotional messages will display all the brands at the end.
All the cans and bottles of distinct brands will be of the same size and style differentiated by colors.
Doubling the advertising budget for lower and no sugar brands
ponsoring an international event of Rugby (Wang, 2015).
The SWOT analysis considers the company’s strength, weaknesses, opportunities and threats at the time of strategy formulation and implementation. The Coca Cola Great Britain Company situation for the implementation of the strategy was as follows;
Large market share: The Company has the largest market share in Great Britain market. The company is market leader in relation it competitors. This gives the company ability to reach a large mass of beverage consumers in the market.
Customer loyalty: The Company enjoys a customer loyalty that it has created over years. Customers know the company brand and have preference to it products. Therefore, it can be said that the company enjoys freedom to make internal changes without losing customers (Curtis, 2005).
High brand equity: The Company’s Coca Cola brand enjoys the highest brand equity. This is because of it vast presence in the markets. It trade mark which is unique gives it a high brand equity. It was named as the highest valued trademark by Blumeyer in 2008 in the world.
Availability of resources .The Company has an enough resources that it has accumulated over time. The company is able to finance it manufacturing and promotional activities without running risk of liquidation. This enables the company to engage in any profitable strategy despite initial spending.
Good distribution channels: The Company has well established distribution channels throughout Britain. This facilitates the marketing process since the company’s products are able to reach the intended consumers at the right timely and in the right form (Morris, 2005).
Unable to contain Pepsi: The Company is not able to contain it main competitor Pepsi. The company is has no structure to prevent Pepsi from continued competition in the market. This forms a weakness in the company that can lead to tremendous decline in the company’s sales. Therefore, the company should incorporate this factor when deciding on the appropriateness of the one brand strategy (Bhasin, 2016)
Developing negative publicity: Due to increasing health conscious, carbonated drinks are highly blamed. Coca Cola being the largest producer of carbonated drinks in the market makes it a concern. Increased obesity in the society can be directly blamed to the company (Toryanik, 2016). Therefore, the company faces this factor has a weakness which can negatively influence it market performance and efforts are needed to prevent it advancement.
Market segmentation: the company has an opportunity of further segmenting the beverage market. The company can be able to target and win more consumers by producing more healthy products. This gives the company an opportunity of growth by pursuing the marketing of lower or no sugar products.
Improvement of the supply chains: There is an opportunity of improving the supply chain in the distribution of Coke products in Britain. The efficiency in the supply chain can enable cost reduction which can lead to more return margins for the company.
Emerging indirect competitors: Coke beverages are facing indirect competition from other products such as tea and coffee that offer refreshing beverages to the same market. These competitors lower the market demand for Coke brands. Therefore, the market performances of Coke brands face a threat from increasing demand for indirect competing products.
This strategic tool analysis the political, economical, social, legal and environmental factors that affect the business when the strategy is formulated or being implemented. They are as follows;
Political: This is the national political environments. It refers to regulations and legislation from the governments of the day. The government influences how the manufacturing process will be carried out. They set standards and when the company declines to a bid, it fined by the government. These includes labeling and ingredients used in manufacture or packaging of the product. Coke product fall under food category and therefore is regulated by Food Standards regulations (Morris, 2005). Therefore, the United Kingdom government regulations on food and beverage regulation will set the minimum requirements for the manufacture and tailoring of the promotional message. It is therefore the responsibility of CCGB to adhere to these regulations and submit taxes to avoid being inconvenienced.
This analysis refers to the economic performances that will either favor the strategy implementation or limit the effectiveness of the strategy. These factors are changes in income, inflation, interest rates or costs of inputs. These factors cause changes in demand and supply of the company’s products. When economical factors increase consumers’ purchasing power, they lead to increased demand that increase the company’s sales for the period. Therefore, these are macro factors that would affect one brand strategy and are behold the company’s control. The company depends on forecasts to predict the likelihood of their occurrences and change accordingly.
The company strives to maintain a low cost strategy in it production processes in order to be flexible in case of change in economic performances.
This factor involves the people in their societies. They refer to changes in cultures over time. People continue to evolve that lead to change in lifestyles. When lifestyles change, people tend to change what they consume. The society at large in Britain has continuously changed in terms of eating habits and has become more health conscious over time. Therefore, there is a shift of taste and preference to more healthy diets. This necessitates companies to incorporate health factor in their products.
These are factors that lead to advancement in production methods and how business transactions are carried out. They increase efficiency in the business and whenever a company fails to adopt them, it gives their competitors a competitive edge. Therefore, technology is an important aspect in the business. The CCGB Company should embrace technology to lower it production costs and increase the effectiveness of marketing activities. Following the widespread of internet, the company should embark on promotional activities that reach mass customers at the lowest cost.
Evaluation of the Strategy implementation Issues of One Brand Strategy
This process involves the questioning of the implementation process to establish effectiveness of the implementation process to meet the strategic goal for the specified periods of time (Thompson & Martin, 2010). The evaluation of implementation of one brand strategy by CCGB is based on how the implementation process ensured that the planned changes are effectively adopted and are achieving the intended goal.
The implementation process determines the success of strategic plan. Therefore it how well the implementation process follows the strategic plan that determines the success or failure of the strategy. The CCGB strategic goal aims at uniting the four brands and offer support by gaining associates from established brand. The implementation process will be evaluated on the link to budget, employees and managers and the strategy. The benchmark of evaluation is the desired goal of the strategy and the proposed changes to be made.
It is evident from the proposed changes that the CCGB has laid a double marketing budget for the year. This budget ensures that there are funds to market the lower or no sugar Coke drinks in the country. The budget will ensure that promotional activities are aggressive and of good quality to influence preferences of the targeted audiences.
The employees are the ones who make the strategic changes and therefore are in the central point of the implementation of the strategy. Employees manufacture products and need to be linked to the strategy through incentives to facilitate their contribution to the strategy (Sekhar, 2012.). The involvement of employees is important for the effectiveness of the implementation process of the strategy. The marketing team that will create the promotional message should be motivated to enhance their effectiveness in implementing the strategic goal of the company (Deng , 2012).
The other factor that will be used to evaluate the implementation process of the one brand strategy is the link between the managers and the strategy. This will involve the structure that the management will offer for implementation of the strategy. Managers are supposed to offer leadership in the organization to ensure that the strategy is implemented as indicated in the plan (Sadler, 2003). Therefore, managers have a responsibility to ensuring that the strategy is effectively implemented. The managers of CCGB will be required to institute structures that promote the adoption of the outlined changes. The managers are also required to design the reward for employees to motivate employees during the process of strategy implementation.
Key Issues in One Brand Strategy and it Implementation Process
Brand Association: The Company on brand strategy is meant to increase awareness of the differentiated brands by uniting it to be in one brand of Coca Cola. Since Coca Cola is an established brand, target audience will receive the whole information about the four distinct brands the same time. This will help the brands that are not known to be in the limelight in association with the known brand hence informing target consumers of their existence. This was as a result of targeted consumers not aware of the existence of their tailored made drinks of coke. Therefore, the strategy will inform consumers of the variety offered by the company.
Health: Due to the developing consciousness of health by the UK society, it important for the company to focus on delivering products that matches their needs. It critical for the Company to consider the society’s needs and work on satisfying them by providing products that match specific needs (Graham and Dodd, 2004). Due to increased obesity in the society, the company should be cautious to avoid being blamed for supplying customers with products that have high carioles and sugar. Therefore, having a promotional message for all brands under one umbrella that covers the whole story will enlighten consumers and refer them to products that best serve their needs.
For the effectiveness of the one brand strategy, the following is recommended;
The promotional message should be educative: The message used to advertise the Coca Cola brand should be educative. This will increase the appropriateness of the message by giving the required information to make information. Educative message will give knowledge to the target consumers of different segment hence adopting their respective brand.
Involvement in Corporate social responsibilities activities: This will help the company create a positive publicity in a society faced will lifestyle diseases. This will create a relationship between the company and the society. In this process, the company can exchange their informative messages about the different brands and their intended customers (Jeyarathnam, 2008).
Use of salespersons for marketing: This inclusion will allow personal appeal in the process of promoting companies products. Consumers will be able to ask questions and get immediate answers. This will increase understanding among consumers of different segments.
From the evaluation of the one brand strategy of CCGB Company, it clear that the effectiveness of a strategy does not only depend on the formulation of a good strategy but also the effectiveness of the implementation process. The strategy formulated should always have specific, measurable, realistic and attainable goals. This enables the company to adopt the strategy and change for the benefits of the organization. It also shows that the strategic goal should be in line with the company’s long term objective. It should serve a part of the long term objective for the attainment of the company’s vision. This way, the company will be able to be flexible and change accordingly with the changing macro factors thereby securing it survival in the future.
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